Direct Stream (without video transcode) possible for MKV / VC-1 / DTS?

Plex Players Gaming Consoles
1

I understand that until Microsoft allows it DTS audio will have to be transcoded. I have a number of MKV files which have VC-1 video with DTS audio. I’m fine with the DTS transcode, but why does it transcode the video? Is it because HLS streams don’t support VC-1 with AC3? Is there any work around via profile settings to fix this? I swear that about a month ago this worked without video transcoding. The applicable part of the log shows:

Aug 30, 2016 00:48:05.527 [6948] DEBUG - MDE: analyzing media item 7252
Aug 30, 2016 00:48:05.527 [6948] DEBUG - MDE: E01 - The Man Trap: Direct Play is disabled
Aug 30, 2016 00:48:05.527 [6948] DEBUG - MDE: E01 - The Man Trap: media must be transcoded in order to use the hls protocol
Aug 30, 2016 00:48:05.528 [6948] DEBUG - MDE: E01 - The Man Trap: no direct play video profile exists for http/mkv/vc1/dca
Aug 30, 2016 00:48:05.528 [6948] DEBUG - MDE: E01 - The Man Trap: no remuxable profile found, so video stream will be transcoded
2

Anyone have an idea on this one? It seems like it should be a simple yes / no based on profile / client / server code. Is there a way to downgrade to pre 1.0, are packages for older versions available?

Thanks.